The late billionaire Charlie Munger, who passed away at the age of 99, shared in an interview that there’s no hidden formula to achieving financial success and longevity.
What Happened: Munger’s approach to life and work was simple and direct. He focused on evading conventional pitfalls and was prudent in his decision-making.
Munger, a resident of the same humble abode for seven decades, held the belief that lavish living often paves the way to discontent.
“I avoided the standard ways of failing, because my game in life was always to avoid all standard ways of failing. You teach me the wrong way to play poker and I will avoid it. You teach me the wrong way to do something else, I will avoid it. And, of course, I’ve avoided a lot, because I’m so cautious,” Munger said in the interview with CNBC.
This pragmatic approach was also mirrored in his spending habits. When his business associate at Berkshire Hathaway, Warren Buffett, opted to replace a company jet, Munger deemed the $6.7 million expense as extravagant.
In Munger’s view, steering clear of apparent risks, frivolity, and “insane” scenarios were instrumental to his financial success and longevity. “Steer clear of insanity at all costs. Insanity is far more prevalent than you’d imagine,” he said.
Munger’s financial success and longevity were driven by his ability to steer clear of unnecessary risks, frivolous decisions, and irrational situations.
“Avoid crazy at all costs. Crazy is way more common than you think. It’s easy to slip into crazy. Just avoid it, avoid it, avoid it,” Munger said.
Why It Matters: Munger’s philosophy of financial success and longevity offers valuable insights into his life and work ethic.
His avoidance of conventional failure modes, his cautious decision-making, and his disdain for extravagance and risky ventures like cryptocurrency, all paint a picture of a man who valued practicality and prudence over quick gains and lavish lifestyles.
His views on financial success and longevity, while not groundbreaking, offer a refreshing perspective in a world often obsessed with quick riches and ostentatious displays of wealth.
His legacy serves as a reminder that success can be achieved through simplicity, caution, and a steadfast refusal to participate in “insane” ventures.
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